ABSTRACT
A revival of the incentives to work and save could not take place without the unraveling of government as the authors have known it over the past half-century. The last required "a predictable and steady growth in the money supply". On the face of it, Reaganomics simultaneously embraced the tax cut of classical supply-siders and the automatic monetary rule of the monetarist school. By cutting transfer payments, moreover, the authors will be able to reallocate the funds to MX missile systems, B-2 bombers, and all the other accoutrements of the Defense Department, that implacable and insatiable guardian of our national security. It seems fairly clear that supply-side praxis and classical supply-side theory are in collision, between the claim of lowering the real tax rate and the reality of merely neutralizing the effect of inflation bracket creep and the rise in Social Security taxes.
